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  • First differencing with control variables

    Hi everyone,

    I'm now analyzing 2-time period panel data to see the effect of life goals on happiness in Indonesia.
    So, here are the variables i am using:
    - Dependent: Happy (happy/not)
    - Independent: Success goal, prosocial behavior, religiosity
    - Control: age, sex, health status, income, attending school/not

    I know very little about Statistics, do you know how to run the first difference estimation with those variables?
    thanks in advance!

  • #2
    See

    Code:
    help xtlogit
    Here, you will find examples demonstrating estimations using the conditional-logit fixed effects estimator. There is no first-differencing, you are conditioning the fixed effects out of the likelihood.

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